$8.6bn of Westpac mortgages go to P&I
Westpac has recorded another $8.628 billion of mortgages switching from interest-only to principal and interest in the first quarter.
The shift, which the bank says has followed repricing of its book and increased minimum deposits for interest-only home loans, means that $27.3 billion has now been moved at Westpac since the Australian Prudential Regulatory Authority reduced limits to slow down growth in interest-only lending nine months ago.
The lender on Monday also said that 22 per cent of new home loans in the three months to December 31 were interest-only, less than half the level of a year ago and well below the 30 per cent limit APRA announced last March.
Mortgage lending to investors grew by 5.1 per cent, below APRA's 10 per cent cap.
In a brief capital, funding and asset quality update, Westpac said its level of impaired assets was stable in the quarter with no new large individual impaired loans over $10 million.
Australian mortgage delinquencies were flat at 0.67 per cent.
Shares in Westpac were down 34 cents, or 1.1 per cent, at $31.36 at 1010 AEDT against the backdrop of a sharp overall decline on the ASX.
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